Elon Musk Admits He’s Cracking Under Stress Of Tesla Job

Shares of Tesla Inc. fell 9% Friday after CEO Elon Musk told The New York Times that he was undergoing major nervous stress and was preparing for “extreme torture” on the part of short sellers. You’re here The title was on track for its biggest downturn in two years, as Wall Street challenged Musk’s ability to lead the electric car maker. Investors were also concerned about reports that regulators were putting pressure on Tesla’s directors to obtain details of how much information he shared with them.

Musk surprised the markets last week with a tweet that he was considering taking private Tesla for $420 (about 29,300 rupees) per share and that he had obtained funds. SEC has opened an investigation related to his tweets, according to a person with direct knowledge of the subject.

The Times said efforts were underway to find a number 2 leader to take the pressure off Musk, who struggled with Tesla’s Model 3 sedan production problems and was criticized for his erratic behavior on Twitter.

“The past year has been the most difficult and painful year of my career and has been unsustainable,” said Musk. the interview of one hour, in which he would have smothered more than once.

Musk also said that he had no intention of giving up his dual role as president and CEO. He stated that he was preparing for “at least a few months of extreme torture on the part of short sellers, who are desperately pushing a story that could lead to the destruction of Tesla”.

With $ 11 billion worth of shares sold short (around Rs 76,775 million), Tesla is the best-selling US company, according to S3 Partners, a financial analyst firm. On Twitter, Musk often complains about sellers and ridiculed them.

“If your plan is to take this private company, from the perspective of the public and the SEC, people who have a fiduciary responsibility to their investors must feel comfortable, and the New York Times article harder, “said Mike O. Rourke, chief market strategist at JonesTrading.

The fall in the stock of Tesla dropped its market capitalization by $ 5 billion (about Rs 34,897 crores), but still left about $ 1 billion (about 6,979 crores) above the 51 billions of dollars (about $3.55,955 million). market value.

Tesla, who loses money, has spent money aggressively increasing the production of Model 3, a process that Musk called “production in hell.” Tesla bulls rely on Musk to increase production exponentially, which will translate into long-term benefits.

“Everyone reacts to the interview that Musk gave, where he seemed to be an exhausted and frustrated individual,” said Tim Ghriskey, chief strategist at Inverness Counsel, who does not own Tesla shares. “The strength of the company, in the long run, raises concerns, perhaps even its viability if it can not be a solid leader.”

UBS analysts this week questioned the profitability of Model 3, in a report that Tesla could lose $6,000 (about Rs 4,187,770) on each base model. The broker said the automaker’s top-of-the-line Model 3 sedan would also not produce better profit margins than a classic BMW.